Analysis of Household Food Consumption Pattern: An Application for China

Abstract

This study analyzes consumption pattern of three aggregated food categories for households in China. Grain, meat products andaquatic products are chosen to understand consumption pattern in Jiangsu and Guangdong provinces in China. The LinearExpenditure (LES) and Indirect Translog Demand Systems (ITDS) implemented to estimate income elasticities, own price elasticities,and cross price elasticities of these food categories. In addition to that an economic variable is used in the system to explain impacton household consumption pattern, so ITDS with and without economic variable are also examined. Analysis results show that fishhave the highest income elasticities among others, while grain has the lowest income elasticity. According to high own price elasticitiesof fish and meat products traders and policy makers should be more circumspect to maintain profitability.